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SANJIB BANERJEE, SENTHILKUMAR RAMAMOORTHY
Sinduja & Co. , Rep. by its Proprietrix Amereswari, Chennai – Appellant
Versus
Authorised Officer, UCO Bank, Chennai Main Branch, Chennai – Respondent
JUDGMENT :
Sanjib Banerjee, J.
Prayer: Petition under Article 227 of the Constitution of India against the orders dated 01.02.2021 made in RA(SA) No.6 of 2020 on the file of the Debts Recovery Appellate Tribunal, Chennai confirming the order of Debts Recovery Tribunal-II, Chennai made in S.A.No.71 of 2018.
1. The borrowers have failed in their myriad excuses proffered before both the Debts Recovery Tribunal and the Debt Recovery Appellate Tribunal and now seek to approach this Court with the object of gaining more time and delaying the closure of the transaction with the bank.
2. The facts have been lucidly indicated in the order impugned dated February 1, 2021 passed by the appellate tribunal. The petitioners obtained substantial credit facilities from UCO Bank in 2012 upon mortgaging their individual properties as security. A demand notice was issued under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 on April 19, 2017 on the petitioners. The petitioners claim that the mandatory time required to be given under Rules 8 and 9 of the Security Interest (Enforcement) Rules, 2002 was not followed. However, such com
The secured creditor has the discretion to charge interest and receive delayed payment from the auction-purchaser, and the conduct of the borrowers determines the exercise of discretion in their favo....
The court upheld the validity of the auction conducted by the secured creditor as compliant with statutory requirements.
The impact of communication from the bank on the actions of auction purchasers and the compliance with the Security Interest (Enforcement) Rules were central to the court's decision.
The central legal point established in the judgment is the abuse of writ jurisdiction by the borrowers and the consequences of their actions on the auction-purchaser and the Recovery Officer, leading....
The court affirmed the applicant's right to address grievances regarding bank actions before the Debt Recovery Tribunal, emphasizing the urgency for interim relief.
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